Learn about HBP withdrawals and how to submit the request.
The Home Buyers' Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home.
The HBP allows you to pay back the amounts withdrawn within a 15-year period.
You can make a withdrawal from more than one RRSP as long as you are the annuitant of each RRSP account.
Certain conditions must be met in order to be eligible to participate in the HBP, including the following:
- you must be considered a first-time home buyer. If your participation is in respect of a specified disabled person, this condition does not have to be met
- you must have a written agreement to buy or build a qualifying home, either for yourself or for a specified disabled person
- you have to be a resident of Canada throughout the period that starts when you make your first eligible withdrawal from your RRSPs under the HBP and ends when you buy or build a qualifying home
- you must intend to occupy the qualifying home as your principal place of residence within one year after buying or building it. If you buy or build a qualifying home for a specified disabled person, or help a specified disabled person to buy or build a qualifying home, the specified disabled person must intend to occupy the qualifying home as their principal place of residence within one year after buying or building it
Important to Note
- You have to fill out Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP for each eligible withdrawal.
- You are responsible for making sure that all HBP conditions are met (see the eligibility questions in Area 1 of Form T1036, Home Buyers’ Plan (HBP) Request to Withdraw Funds from an RRSP). The CRA may contact you to ask for more information about your HBP withdrawal.
- If you make an RRSP withdrawal under the HBP and a condition is not met, your RRSP withdrawals may be considered ineligible. If your RRSP withdrawals are considered ineligible, you will have to include part or all of the withdrawals as income on your income tax and benefit return for the year you received the amounts.
- If you made contributions to your RRSPs within 90 days of your HBP withdrawal, your RRSP contribution may not be deductible.
How to submit the request
First, find the client's CRM Contact Record page by searching contact name in the search bar. Next, navigate to the Servicing (Service Request) tab on your clients contact card and select Account Administration.
Step 1:
- Select Special handling
Step 2:
- Select Home Buyers' Plan
Step 3:
- Select the RRSP
Step 4:
- Select the Offset account
The Offset account is used to de-register the funds before the EFT to the bank account.
Step 5:
- Select the Banking details that the HBP payment will be sent to
Step 6:
- Attach a signed copy of the T1036
- Specify the Amount
Step 7:
- Select Submit. Now you can track your ticket.
Service Standard
Upon submission, the assets will be sold on the next available Friday, with settlement occurring four business days later. Then the withdrawal will be processed which takes 2 business days.